Buying an indivisible asset like a cow is a savings strategy precisely because neighbors cannot ask for 10% of a cow, whereas cash savings invite the question 'do you have any money?' — so converting savings into lumpy, non-divisible, hard-to-observe forms protects them from social claims.

causalpending

Speaker

Michael Munger

Evidence Quote

I go buy a cow it's hard for my neighbor to come and get part of the cow yeah it's hard to take 10% of the cow... but now I have some wealth that's indivisible

Source

Mike Munger on Microfinance, Savings, and Poverty 04/18/2011EconTalk
Created: 6/17/2026, 10:29:24 AM

My Notes

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